On Nov. 25, 2024, the Indiana Court of Appeals ruled that a former chief operating officer (COO) at a medical fee collection company did not breach noncompete agreements nor a nondisclosure provision when she took a job with a competitor.

In Med-1 Solutions, LLC v. Taylor, a group of medical fee collection companies collectively referred to as RevOne Companies sought to enforce a series of noncompete agreements to stop a former COO from taking a job with another company that also provides revenue cycle to health care clients.

A panel for the Indiana Court of Appeals disagreed with a trial court’s ruling that a 2014 noncompetition agreement was not supported by consideration since employment served as the consideration for a similar agreement signed in 2010. The appellate court held that when an at-will employee signs a noncompete agreement at hiring and is later required to sign a subsequent agreement to continue his or her employment, the continued employment can serve as consideration for the latter agreement.

However, the appellate court ultimately affirmed the denial of a preliminary injunction to block the former COO’s move, finding that the 2014 agreement was likely overbroad and RevOne lacked evidence that she broke a nondisclosure provision.

Consideration

The employee had signed a noncompete when she was hired in 2010. Then, in 2014, she was presented with a broader agreement, which included a severability clause and a nondisclosure provision, that she was...

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